Question

Distinguish between formal and informal sector of employment with the help of suitable examples. OR Discuss the long term implications of increased demand for environmental resources exceeding their natural regenerative capacity.

Hint:

Use resources sustainably → Protect future generations

Answer 1

Step 1: Understanding the Concept:
Employment is categorized based on the size of the establishment and the nature of legal protections provided to workers.
Step 2: Detailed Explanation:
Formal Sector:
- It includes all public sector establishments and private sector establishments which employ 10 or more hired workers.
- Workers enjoy social security benefits (pension, gratuity) and are protected by labor laws.
- Example: A software engineer working in Infosys or a clerk in the State Bank of India.
Informal Sector:
- It includes all those private enterprises which hire less than 10 workers, as well as the self-employed.
- There is no social security, and labor laws generally do not apply. Employment is often irregular.
- Example: A street vendor, a farm laborer, or a worker in a small tea shop.
Step 3: Final Answer:
The primary difference lies in the number of workers (10+) and the availability of social security benefits.
B
Step 1: Understanding the Concept:
The environment has two main capacities: "Regenerative Capacity" (ability to renew resources) and "Absorptive Capacity" (ability to absorb waste).
Step 2: Detailed Explanation:
When the rate of resource extraction exceeds the rate of regeneration, the environment fails to perform its life-sustaining functions.
1. Resource Depletion: Non-renewable resources like fossil fuels will vanish, and renewable resources like forests and groundwater will dry up.
2. Environmental Crisis: It leads to global warming, ozone depletion, and loss of biodiversity.
3. Increased Opportunity Costs: To fix the damage (like purifying polluted water or dealing with climate disasters), the government has to spend huge sums, which otherwise could have been spent on health or education.
4. Threat to Future Generations: It violates the principle of sustainable development, leaving fewer resources for the next generation.
Step 3: Final Answer:
Exceeding regenerative capacity leads to a permanent environmental crisis and economic instability.